2018 (5) TMI 1384
Addition on account of materials purchased - bogus purchases - Held that -Details of these parties were properly provided before the AO and the existence of those parties cannot be questioned. The statement made by the AO in this regard that the assessee did not furnish the evidence/bills and vouchers in respect of materials purchased is not tenable. In fact when the details of the required documents were furnished the disallowance of 20% of the ....... + More
2018 (5) TMI 1383
Validity of re-assessment proceedings - remuneration paid to the three members were disallowed - case reopened after the end of four years from the relevant assessment year - Held that - There is no failure on the part of assessee in furnishing full and true disclosure of the information. The assessment U/s. 143(3) was completed after survey proceedings on the assessee s business premises. In view of that, it cannot be stated that assessee has no....... + More
2018 (5) TMI 1382
Computation of income - rejection of books of accounts - estimation of NP - Held that - Department in its circular have emphasized time to time that the Income Tax Authorities should not try to extract the admission of the assessee and should bring some concrete material on record for the purpose of estimating the undisclosed income of the assessee. In these circumstances, particularly when contradictory order has been passed by the A.O. without ....... + More
2018 (5) TMI 1381
TPA - Exclusion of foreign exchange fluctuation loss from the operating expenses - Held that - We find that the foreign exchange fluctuation loss is not abnormal only to the assessee. Such fluctuation would affect the margins of the comparable companies as well as long as the transactions are in the same currency. In a number of cases, we have already held that the foreign exchange fluctuation profit or loss is also part of the operating revenue........ + More
2018 (5) TMI 1380
Income accrued in India - period of stay in India - Stay in India for 181 days - NRI status of assessee - rectification application - salary income was wrongly offered in the return of income - Held that - Assessee is a NRI, worked as a crew member of foreign ships during the previous year relevant to the assessment year 2011-2012 and was not disputed by the AO and CIT(A). In the rectification proceedings the assessee as required by the AO has pr....... + More
2018 (5) TMI 1379
Rejection of books of accounts - estimation of income - rejection of trading results - Held that - The trading result declared in previous years based on the accounts maintained in the same fashion, has been accepted by the department either under section 143(3) or 143(1) of the Income Tax Act. Moreover, once the account books were rejected under section 145 of the Act, no show cause notice was issued to the assessee to make the best judgment ass....... + More
2018 (5) TMI 1378
Deemed dividend u/s 2(22)(e) - earnest money paid by the company on behalf of the directors - money was not returned after cancellation of sell agreement - collateral security given by the Director of the company in individual capacity - Held that - Perusal of the correspondence between assessee and Director of M/s. Alpex Exports Pvt. Ltd. & M/s. Karishma Machine Tools apparently shows that the huge amount of ₹ 1,28,52,217/- alleged to ....... + More
2018 (5) TMI 1377
Disallowance of various expenses like, conveyance, travelling, foreign travelling, telephone and electricity etc. - Held that - Disallowance has been made on ad-hoc basis without pointing out any defects in the books of accounts or vouchers maintained for these expenses, thus, addition to be deleted - Decided in favour of assessee. - TDS u/s 194C/194I - non-reduction of TDS on monthly maintenance charges paid to housing societies - Held that - Fo....... + More
2018 (5) TMI 1376
Reopening of assessment - reopening on basis of objections by the revenue audit party - Difference in credited interest income and gross interest as reflected from TDS certificates furnished by the assessee - Held that - As we observed from the record that the assessee had already filed the TDS certificates in the original assessment proceedings before the AO and the AO has mentioned in para 4 that the details of TDS was called for and in para 5 ....... + More
2018 (5) TMI 1375
Validity of the order passed U/s 147 - accommodation entries taken by the assessee company - receipt of specific information from Investigation Wing, Delhi regarding accommodation entries taken by the assessee company - Held that - The belief formed by the AO after due examination of the material on record that the income of the assessee chargeable to tax during the relevant assessment year has escaped assessment cannot be said to be arbitrary or....... + More
2018 (5) TMI 1374
Transfer pricing adjustment - transaction of import of raw materials - Held that - We find merit in the plea of assessee in this regard that the DRP should have admitted the additional evidence, consider the same and then decide the issue. The DRP having failed to do so, the action of DRP in this regard is not justified in view of the provisions of the Act. Accordingly, we remit this issue back to the file of DRP, who shall admit, consider and ad....... + More
2018 (5) TMI 1373
Levy of penalty U/s 271(1)(c) - NP rate estimation initited by AO - Reduction of rate % - Held that - Undisputedly, the turnover declared by the assessee in his return of income filed much prior to survey has been accepted by the Assessing Officer and thereafter the Assessing Officer has estimated the NP rate @ 20%. Subsequently, during the appellate proceedings, the NP rate has been reduced by the ld. CIT(A) to 12%. There is no finding recorded ....... + More
2018 (5) TMI 1369
Reopening of assessement - case of petitioner is that Since amalgamation, the company had no legal existence - also, it was claimed that M/s. Dharmanath Share & Services Private Limited was subjected to assessment under Section 153 C of the Act in which entire transactions; including the commission amount, have been taxed. The same cannot now be taxed in the hands of assessee - Held that - Division Bench of this Court in case of Khurana Engin....... + More
2018 (5) TMI 1327
Reopening of assessment - objections filed by the petitioner pursuant to the notice issued u/s 148 not been disposed of by the respondent-Authority - non passing a speaking order - Held that - Passing of the assessment order sans disposing of the objections raised subsequent to issuance of the notice under Section 148 of the Act is untenable and accordingly, the impugned assessment order as well as the demand notice are set-aside. See M/S. DEEPAK....... + More
2018 (5) TMI 1326
Reopening of assessment - approval u/s 151(1) in the case on hand has been granted by the ACIT Range 7 and not by the CIT as mandated under the Act - Held that - The Hon ble Delhi High Court in the case of Pr. CIT vs N.C. Cables 2017 (1) TMI 1036 - DELHI HIGH COURT held that approval under section 151 is to be made after application of mind. It is not so in this case as mechanical approval is given by an officer who is not authorised to do so in ....... + More
2018 (5) TMI 1325
Reopening of assessment - existence of reasons to believe - Held that - We have to necessarily hold that the reopening is bad in law, as in this case on hand, there is no whisper, much less an allegation that there is failure on the part of the assessee to disclose fully and truly all material facts, necessary for assessment. Hence the mandatory requirements of the proviso to section 147 has not been fulfilled in this case. - We hold that the reo....... + More
2018 (5) TMI 1324
Taxability as long term capital gain - provisions of section 50C applicability - Held that - As we have held that what was sold, was stock-in-trade and hence assessable under the head business income, the provisions of section 50C will not apply for the impugned assessment years. Hence this finding of the Ld. CIT(A) is also upheld. Thus the ground of revenue in these appeals for the assessment year 2008-09 is dismissed. - Speculation loss as trad....... + More
2018 (5) TMI 1323
Undisclosed income from purchase of bitumen from Shri K.K.Kedia - Held that - When it is proved that charges against the assessee are not correct no addition based on such allegations can be sustained. The ld. CIT(A) also records that the assessee has filed documents to counter the allegations of the AO and to prove actual delivery of bitumen etc and also to prove that there was no misappropriation. The ld. DR could not controvert the factual fin....... + More
2018 (5) TMI 1322
Assessment u/s 153A - addition to income - Held that - The Co-ordinate Benches in the case of Y.V. Anjaneyulu Vs. DCIT, Vijayawada 2017 (6) TMI 547 - ITAT VISAKHAPATNAM) held that assessments U/s. 153A could not be made on the basis of income returned by assessee or on the basis of books of account of assessee where no incriminating material had been found from possession of assessee. - CIT(A) inspite of written submissions made before him and co....... + More
2018 (5) TMI 1321
Eligible for deduction u/s 80IA - allocation of proportionate expenses in respect of employees cost and administrative expenses incurred at head office and at various unit offices - Held that - There is nothing available on record in terms of working of eligible profits and accounting of expenses in relation to eligible projects. Following the decision of the Coordinate Bench referred supra, the matter is remanded back to the file of the AO to ex....... + More
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